STAFF REPORT
Meeting Date:
June 23, 2026
CONSENT
11 SUBJECT: AUTHORIZE EXECUTION OF A USE RESTRICTION AND RECEIVE AND FILE
LONG-TERM MANAGEMENT AND MAINTENANCE PLAN FOR LAGUNA
CANYON CREEK EROSION PROTECTION PROJECT
RECOMMENDATION: It is recommended that the City Council:
1. Authorize the City Manager to execute and record the attached Use Restriction and Agreement Regarding the Use of Property for on-site and off-site mitigation areas associated with the Laguna Canyon Creek Protection Project near the Animal Shelter;
2. Receive and file the attached Long-Term Management and Maintenance Plan for long-term stewardship of the mitigation areas and direct staff to complete permit closeout activities; and
3. Determine that no additional environmental review is required for the recommended action based on a prior adopted Final Mitigated Negative Declaration for the project that contemplated these implemented actions.
SUMMARY OF THE MATTER
This report recommends that the City Manager be authorized to execute and record a Use Restriction and Agreement Regarding the Use of Property (“Use Restriction”) for on-site and off-site mitigation areas established for the Laguna Canyon Creek Erosion Protection Project (“Project”) near the Animal Shelter and Pacific Marine Mammal Center. This Use Restriction is a required component of the Habitat Mitigation and Monitoring Plan which was required by the California Department of Fish and Wildlife (CDFW) Lake and Streambed Alteration Agreement Number 1600-2014-0019-R5, the California Coastal Commission (CCC) Coastal Development Permit (CDP) Number 18-1686, and the San Diego Regional Water Quality Control Board (Regional Board) 401 Certification Number R9-2019-0017 (this Water Quality Certification also has its own independent requirement for the Use Restriction) in order to offset unavoidable permanent and temporary impacts associated with the Project. The Project was constructed to implement long-term solutions to avoid flood damage and protect creek banks from further erosion and as part of the Project’s approvals, this Use Restriction was a component of the Project to ensure future use of the areas does not negatively impact or vitiate the benefits and purpose of the Project.
The purpose of this staff report is to address two remaining items for the Project. First, the proposed Use Restriction (Attachment 1) is consistent with the requirements of the Habitat Mitigation and Monitoring Plan and Water Quality Certification for the Project to encumber the mitigation properties, identified in Attachment 2, and preserve them as part of the Project closeout to ensure they are not negatively impacted by future development. Second, the above-mentioned approvals also require a Long-Term Management and Maintenance Plan (“LTMP") (Attachment 3) to ensure the on-site and off-site mitigation areas are managed, protected, and maintained in perpetuity in accordance with project permit requirements, established by the San Diego Regional Water Quality Control Board. The Use Restriction has both an onsite and off-site component. Both are geared toward the same goal to protect and maintain or enhance the wetland and streambed functions and the language in the Use Restriction does prohibit any future
AUTHORIZE EXECUTION OF USE RESTRICTION AND RECEIVE AND FILE LONG-TERM
MANAGEMENT AND MAINTENANCE PLAN FOR LAGUNA CANYON CREEK EROSION
PROTECTION PROJECT
June 23, 2026
development in the identified areas that would negatively impact the wetland and streambed functions and values of the sites. The Use Restriction does not unequivocally prohibit any activities or development in and around the site areas: instead, the Use Restriction is geared towards activities or development that reduce the environmental functions and values of the sites. The City may apply to the San Diego Regional Water Quality Control Board for termination of the Use Restriction in the future. However, there is not guarantee of this in the future and removal would likely result in a request from the San Diego Regional Water Quality Control Board for other mitigation efforts/projects.
Construction of the Project was completed in April 2021. The Habitat Mitigation and Monitoring Plan and Water Quality Certification require on-site and off-site mitigation, five years of biological monitoring and maintenance, and permanent protection of the mitigation areas through a long-term management plan and recorded use restriction.
DISCUSSION
The Laguna Canyon Creek Erosion Protection Project was initiated in response to repeated storm-related erosion and damage within Laguna Canyon Creek adjacent to the Laguna Beach Animal Shelter and Pacific Marine Mammal Center. The channel banks in this area had been damaged and eroded as a result of heavy storm flows, with the project identifying storm damage from 2010 to 2019. In response, the City developed the project in 2019 to repair eroded channel banks, improve hydraulic performance, stabilize the creek corridor, and protect nearby public-serving facilities and infrastructure.
As the project was refined in 2019, the scope expanded beyond basic erosion repair to include structural creek improvements and habitat restoration. The approved work included vegetation removal, sediment excavation, replacement of existing riprap with concrete block slope protection, construction of a high-flow stream terrace and retaining wall, pedestrian crossing replacement, streambed widening, and creek bank restoration with native landscaping.
Overall, the project was designed to improve channel capacity, reduce erosion, stabilize slopes, protect nearby public facilities, and enhance the creek corridor. The project also required environmental and regulatory review in 2019 due to impacts to jurisdictional waters and creek corridor habitat. The project received Design Review Board approvals on January 24, 2019, California Coastal Commission approval of the appealed Coastal Development Permit on October 18, 2019, and City Council approval of the construction contract on December 17, 2019. Further, because this Project contemplated development and improvements within “Waters of the United States,” it was further subject to United States Army Corps of Engineers (USACE) Nationwide Permit 404 Authorization Number SPL-2014-00346, California Department of Fish and Wildlife (CDFW) Streambed Alteration Agreement Number 1600- 2014-0019-R5, and San Diego Regional Water Quality Control Board (RWQCB) Section 401 Water Quality Certification R-2019-0017.
Permit conditions included habitat restoration, off-site mitigation, biological monitoring, and five years of maintenance and monitoring requirements. The Project was completed in April 2021, and the Project’s condition for a 5-year monitoring and maintenance period was initiated. The five-year mitigation period
AUTHORIZE EXECUTION OF USE RESTRICTION AND RECEIVE AND FILE LONG-TERM
MANAGEMENT AND MAINTENANCE PLAN FOR LAGUNA CANYON CREEK EROSION
PROTECTION PROJECT
June 23, 2026
ended on December 31, 2025. The purpose of that period was to confirm that the on-site and off-site mitigation areas had successfully established as stable, self-sustaining habitat and that the project had met the ecological performance standards required by the regulatory permits and the Habitat Mitigation and Monitoring Plan. At the conclusion of the five-year mitigation period, the Final Annual Performance Monitoring Report confirms that the required mitigation was successfully established and that all monitoring, reporting, and maintenance requirements under the applicable permits have been satisfied. This concluded that both mitigation areas met all ecological success criteria and performance standards, and that the LTMP and Use Restriction are the remaining permanent site-protection measures needed to complete Project closeout based on the Habitat Mitigation and Monitoring Plan and Water Quality Certification.
The proposed Use Restriction implements long-term site protection requirements identified in the Habitat Mitigation Monitoring Plan and San Diego Regional Water Quality Control Board requirements. The Use Restriction requires, among other things, that the subject properties (as detailed more below) must be maintained in such a way that future activities and development, do not reduce wetland and streambed functions and values. This was what the various permitting agencies required to allow the City to perform the work contemplated by the Project. This is a substantive restriction on the subject property; however, due to environmental sensitivity of the areas and the entitlements associated with the Project, the proposed Use Restriction limits the development that the City may be able to conduct in the at-issue areas. The form and content of the Use Restriction have been approved by the San Diego Regional Water Quality Control Board staff and the City Attorney’s Office.
The Use Restriction will run with the land in perpetuity unless modified or terminated in accordance with the terms of the Use Restriction that would require approval by the San Diego Regional Water Quality Control Board. Failure to approve would result in the City not satisfying the requirements of the Habitat Mitigation and Monitoring Plan and Water Quality Certification and would likely require discussions and resolutions with the various permitting agencies that only approved the Project with the understanding that the environmentally beneficial impacts of the Project would be maintained and protected.
Staff prepared a Long-Term Management and Maintenance Plan (LTMP) to guide ongoing stewardship of both mitigation areas (see Attachment 3). The LTMP is being prepared to satisfy the long-term protection and management requirements contained in the project permits, particularly the San Diego Regional Water Quality Control Board 401 Water Quality Certification No. R9-2019-0017. The LTMP is an operational and maintenance document prepared to demonstrate the City’s long-term commitment to maintaining the mitigation and restoration areas in accordance with permit requirements. As such, the LTMP is being provided to the City Council for receive and file purposes and for awareness of the City’s ongoing maintenance associated with the Project. The plan establishes routine inspections, pre-storm inspections, debris removal, invasive species control, limited vegetation management, and documentation procedures needed to preserve hydraulic function, water quality, and habitat values. This plan is designed to ensure the improvements and goals of the Project are effectuated into the future.
This item was originally scheduled to go before the City Council at its June 9, 2026, City Council meeting.
However, certain clarifications needed to be made to the Use Agreement and its corresponding exhibits to
AUTHORIZE EXECUTION OF USE RESTRICTION AND RECEIVE AND FILE LONG-TERM
MANAGEMENT AND MAINTENANCE PLAN FOR LAGUNA CANYON CREEK EROSION
PROTECTION PROJECT
June 23, 2026
ensure the requirements of the Project entitlements are met and the City’s use of its property is not overly restricted than what is necessary to protect the environmental benefits of the Project. The proposed Use Agreement has been modified in furtherance of these goals for City Council consideration.
FINANCIAL ANALYSIS
No additional appropriation is requested as part of this action. Ongoing inspection and incidental maintenance responsibilities identified in the LTMP will be addressed through Public Works’s existing operational and maintenance services.
ENVIRONMENTAL ANALYSIS
No additional environmental review is required for the recommended action. On January 24, 2019, the Design Review Board adopted the Final Mitigated Negative Declaration for the Project and conditionally approved Design Review 18-1685 and Coastal Development Permit 18-1686, and the California Coastal Commission approved the permit on October 18, 2019. The conditions of approval being implemented through this staff report were part of the original Project and thus evaluated from a CEQA perspective at that time. The current action is administrative and implements previously approved permit conditions by recording a legal restriction and formalizing long-term management obligations for the existing mitigation areas. It does not authorize new construction, expansion of use, or any physical change beyond the scope of the previously approved project and ensure improvements designed to enhance and protect the environment and maintained.
ATTACHMENTS
1. Use Restriction and Agreement Regarding the Use of Property (Pgs. 5-12)
2. Project Location Maps (Pgs. 13-14)
3. Long-Term Management and Maintenance Plan (Pgs. 15-19) Submitted By: Mark McAvoy Approved: .David A Kiff
Mark McAvoy, Director of Public
Works & Utilities
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Yun-Yun Lee, Project Manager Pierre Sawaya, Capital Program Manager Thomas Perez, City Engineer
Patrick Donegan, Assistant City Attorney